United Pilots Suing Ual

July 27, 1985

United Airlines pilots filed suit in U.S. District Court in Chicago to block the airline`s parent company, UAL Inc., from appropriating $511 million from the pilot pension fund. The suit claims that the airline`s contract with the Air Line Pilots Association forbids reversion of pension funds until all pilot benefits are paid. Chicago-based UAL said last month it planned to recover nearly $1 billion from employee pension fund assets, including $511 million from the pilot pension plan. The suit was filed on behalf of the pilots union, the master executive council of the union`s United pilot group and two retired United pilots. Named as defendants are United, three members of the company`s pension committee and the Pension Benefit Guaranty Corp., the federal agency regulating employee pension plans.